Phospholutions Secures Funding to Expedite Commercialization of Enhanced Efficiency Fertilizers

Phospholutions has unveiled an additional investment of USD10.15 million, led by prominent global fertilizer companies and investors. This funding infusion is aimed at accelerating the commercialization of RhizoSorb within the US row crop market. The pool of investors expands further with Keytrade, a significant global fertilizer trader, joining as a new investor.

Jason Burke, Phospholutions' Vice President of Finance, expressed satisfaction with this development, stating, “We are pleased to welcome new investors, such as Advantage and Keytrade, supporting our efforts to accelerate commercialization of our phosphate efficiency technology. Additionally, the continued support from our existing investors really fortifies what we are doing to bring new sustainable fertilizers to the US farmer.”

Fertilizers play a crucial role in global food production, but their manufacturing, use, and losses contribute significantly to greenhouse gas emissions and agriculture’s carbon footprint. Traditional phosphorus fertilizers exhibit low efficiency, with only a fraction, as low as 10%, being utilized by crops during the application year. This inefficient use leads to excess nutrients, including phosphorus, entering water resources, triggering Harmful Algae Blooms (HABs), and contributing to water quality degradation affecting over 70% of Earth's freshwater. This challenge compounds over time, with eutrophication-linked emissions projected to equal 50% to 75% of current vehicle-related emissions.

RhizoSorb presents a patented solution incorporated upstream in the production process of conventional phosphates. This innovation consistently reduces phosphorus applications by up to 50%, maintaining yield, enhancing retail margins, and offering cost savings to farmers. RhizoSorb achieves the same phosphorus delivery to plants using just half the amount of applied fertilizer. The company introduced RhizoSorb 8-39-0 to the US row crop market earlier this year, further expanding its outreach by appointing three Regional Managers and a Director of Agronomy to drive sales to agricultural retailers across North America.

Phospholutions’ technology contributes to the reduction of the environmental impact of phosphate fertilizer. This is achieved by decreasing runoff potential by 58%, leaching by 87%, and greenhouse gas emissions associated with conventional monoammonium phosphate usage by over 50%. Additionally, phosphate manufacturers observe lowered production costs and heightened margins that outweigh the reduction in applied volume per acre compared to conventional phosphate sources.

Phospholutions’ achievements extend beyond investment recognition. The company secured the top position in the International Fertilizer Association’s African Agtech Startup Showcase, a competition hosted in partnership with Mohammed VI Polytechnic University (UM6P). This accolade underscores the global demand for more sustainable fertilizer technologies and validates Phospholutions' commitment to enhancing food security through efficient fertilizer use. RhizoSorb benefits farmers in several countries beyond the US, including India, New Zealand, and Turkey. The company is set to expand field trials into China, Brazil, and Canada during the upcoming 2024 growing season.